Yahoo Finance Brian Sozzi, Alexis Christoforous, and Dan Howley discuss the market action for Sony and Gamestop.
BRIAN SOZZI: Gaming stocks are trending right now on Yahoo Finance. And it's no small surprise as to why. Sony announced this morning, it will launch two versions of its PlayStation 5 in November. Yahoo Finance Tech Editor Dan Howley is here with us now.
Dan, let me guess, you already have pre-ordered both of them.
DAN HOWLEY: I wish. That's probably part of the bigger problem here is that they're having issues with pre-orders now. Essentially, what happened was Sony announced that their new consoles are going to be available this September. The pricing is going to be $399 and $499, $399 for a version without a disk, $499 for a version with a disk.
But once they announced that, they said, look, we're going to start offering pre-orders. It was supposed to be the next day, which would have been today. But now, yesterday, the company started saying, well, we're just going to let people pre-order now.
And it was a huge free for all of a mess. And so many people were trying to get it at the exact same time that people ended up not being on a pre-order or had pre-orders and then, had them canceled. Sites were going down because there was-- they were flooded with people trying to get access to this new console, which, by the way, isn't available till September 17 so, you know, or rather, pre-orders weren't available until September 17.
And you know, the consoles coming out later, in November. I think this is going to be a big opportunity for Sony but also, a big opportunity for Microsoft because the pricing between these has always been the biggest feature almost, right?
The Xbox is launching at $299 for the Series S and then, the higher priced Series X. But I think really, the $299 version is the one that people are going to go after. I mean, you have the lower priced Sony at $399. That's something that, I think, people are going to look at and say, well, why would I go for the Sony, unless I really want those exclusives.
But you have to remember that a lot of third-party game companies are pushing for cross-play compatibility. So that means, if you get an Xbox, your friend has a PlayStation, you could still play with them on certain games. That used to be something that would deter people from trying a different console.
So if you had friends on PlayStation and the PlayStation was $499, well, you had to pay $499 too, to play with your friends. That's not the case, if you have games that have this cross-play compatibility. You could get with your friends who had the $499 PlayStation and still get the $299 Xbox.
So we'll see what that does as far as game console sales. But so far, for Sony, it's been a mess.
ALEXIS CHRISTOFOROUS: All right, so Dan, you say this is an opportunity for Microsoft and an opportunity for Sony. But what about an opportunity for GameStop? I'm looking at that stock right now, up about 2 and 1/2%. Is that directly related to news about this launch?
DAN HOWLEY: Yeah. That's exactly what it is. People have been waiting for GameStop to get the console sales. That's really what's going to drive things for them. Because look, you can buy a console on Amazon or Walmart, but you know, GameStop is still a place where people will go.
And the issue for GameStop has been you can buy games digitally. And frankly, it's easier. You don't have to take up room in your home, unless you're a collector who likes to have those, the hard copies of games. Down the line, you know, it's probably going to go all digital at some point.
So I think right now what we're seeing is GameStop kind of just getting that momentary boost. But once we start to see more and more people get access to the console, those initial sales are out, I think it's going to start to slow down again. And GameStop's going to find itself in the same situation that it's found. This is only a temporary reprieve for the company really.